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ENT 314 W Erwin S2020
Terms in this set (42)
Primary reasons to become an entrepreneur
- Desire to be own boss
- Desire to pursue
- Financial rewards
Characteristics of successful entrepreneurs
- passion for the business
- product/customer focus
- tenacity despite failure
- execution intelligence
Common Myths about Entrepreneurs
- Entrepreneurs are born, not made
- Entrepreneurs are gamblers
- Entrepreneurs are motivated primarily by money
- Entrepreneurs should be young and energetic
- Entrepreneurs love the spotlight
Types of start-up firms
- Salary Substitute
Qualities of opportunities
- Anchored in a product or service, or business that creates or adds value for its buyer or end user
Step 1: Deciding to become an entrepreneur.
Step 2: Developing successful business ideas.
Step 3: Moving from an idea to an entrepreneurial firm.
Step 4: Managing and growing the entrepreneurial firm.
Ways to identify opportunities
- observing trends
- solving a problem
- finding gaps in the marketplace
Types of trends/forces
- Economic forces
- Social forces
- Technological advances
- Political and regulatory change
Steps to generating ideas
The process of determining if a business idea is viable
Components of Feasibility Analysis
- product/service feasibility
- industry/target market feasibility
- organizational feasibility
- financial feasibility
Industry/Target Market Feasibility
- Industry Attractiveness
- Target Market Attractiveness
- Management Prowess
- Resource Sufficiency
- Total Start-Up Cash
-Financial Performance of
- Overall Financial
Attractiveness of the
Business concept, also referred to as the elevator pitch
Definition of business model
Plan/recipe for how business creates, delivers, and captures value for its stakeholders
Categories of business models
Types of business models
- Bricks and Clicks
- Razor and Blades
- Traditional Retailer
- Online Text Ads on Search Engines
- One for one
- Software as a Service (SaaS)
- Cloud-based Service to Connect Riders and People Willing to Provide Rides
Components of Business Model Template
- Core Strategy
Basis of Differentiation
Product/ Market Scope
Product (or service) production
Toms Shoes (One for one business model)
For Toms they sell one item and they give one item and they achieve this by spending little to no money on advertising
Audience for business plan
- A Firm's Employees
- Investors and other external stakeholders
Purpose of a business plan
- A firm's business plan must make the case that the firm is a good use of an investor's funds or the attention of others.
- A clearly written business plan helps the employees of a firm operate in sync and move forward in a consistent and purposeful manner.
Business Plan Outline
- Industry Analysis
- Company Description
- Market Analysis
- Economics of the business
- Marketing Plan
- Design and Development Plan
- Operations Plan
- Management Team and Company Structure
- Overall Schedule
- Financial Projections
a brief overview of the entire marketing plan
Size, growth rate, key success factors, trends
- Market segments and target market/s
- Competitor analysis
- Marketing message and strategy
- Marketing mix/activities
- Company history
- Mission statement
- Products and services
- Current status
- Legal status and ownership
- Key partnerships (if any)
Day-to-day running of the business ('back-stage' and 'front-stage').
Items to include in this section:
- General approach to operations.
- Business location.
- Facilities and equipment.
Management Team and Company Structure
Founder/s and key management personnel.
Items to include:
- Management team.
- Board of directors.
- Board of advisers.
- Company org structure.
- Incorporating the venture.
- Completion of prototypes.
- Rental of facilities.
- Obtaining critical financing.
- Starting production.
- Obtaining the first sale.
- Sources and uses of funds.
- Assumptions sheet.
- Pro forma income statements.
- Pro forma balance sheets.
- Pro forma cash flows.
- Ratio analysis.
Five Competitive Forces Model
- threat of substitutes
- threat of new entrants
- rivalry among existing firms
- bargaining power of suppliers
- bargaining power of buyers
- Emerging Industries
- Fragmented Industries
- Mature Industries
- Declining Industries
- Global Industries
Industries in which standard operating procedures have yet to be developed.
- Opportunity: First-mover advantage.
Industries that are characterized by a large number of firms of approximately equal size.
- Opportunity: Consolidation.
Industries that are experiencing slow or no increase in demand.
- Opportunities: Process innovation and after-sale service innovation.
Industries that are experiencing a reduction in demand.
- Opportunities: Leadership, establishing a niche market, and pursuing a cost reduction strategy.
Industries that are experiencing significant international sales.
- Opportunities: Multidomestic and global strategies.
Sources of competitive intelligence and industry information
- Attend conferences and trade shows.
- Purchase competitors' products.
- Study competitors' Web sites and social media sites.
- Set up Google email alerts.
- Read industry-related books, magazines, and Web sites.
- Talk to customers about what motivated them to buy your product as opposed to your competitor's product.
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